A successful man or woman gets to the point where they realize they do not have the time to manage their investments, but without asset management, a lot of hard work can disappear due to losses on your investments.

If you have reached the point in your career where you have this problem, you need to hire the services of a wealth management firm. You may already have some assistance with your investments, such as those found with a stock broker or an investment firm, but wealth management goes far beyond picking stocks.

Three Important Services of an Asset Management Firm

A Comprehensive Approach To Wealth Management

A wealth management firm will look at the portfolio of your total assets and not just your investments in stocks. Equally important, is that a comprehensive approach includes taxes as well as return on investments. When investing, there are always tax implications that go far beyond income taxes. You can easily calculate your income tax if you sell an asset, but there are many ways to reduce your taxes on the sale of an asset.

There are also smart ways to invest your money that incorporate tax credits and deductions into the equation for a maximum return on investment. Combining tax knowledge and investment skills open up areas of wealth management that goes far beyond what you can do yourself or what a typical investment broker for stocks and bonds can do.

Municipal Bonds

These are tax-free bonds, but they are not without risk. When purchased with knowledge, experience and good research, they represent an outstanding investment. It is often tempting to simply look at the tax-free aspect of these bonds and attempt to buy them yourself, but without buying the right bonds, the tax-free element may not be worth the effort.

You need a wealth management firm to select the right municipalities to invest in, because in today’s economic environment, cities can go bankrupt. Along with the security of the bond, you want to also maximize your return. Combining an interest rate, with the tax advantages is best done by those who understand bond investments and also have the skills of a tax accountant.

Personalized Service

Because all of your assets are being managed, wealth management becomes personalized. Not only is there a strong interest in what you want to achieve financially, but your total portfolio of assets will be designed to reflect your personality and preferences. If there are certain types of assets you do not want to purchase, for whatever reason, these assets will not become a part of your portfolio.

With a wealth management firm, your asset portfolio will reflect who you are, not only as an investor, but as an individual. Common investment brokers do not approach this level of personalized service.

Wealth management is something that will benefit you and your loved ones for the rest of your life, and with the proper estate planning, a wealth management firm will benefit your loved ones long after you have passed away. Selecting a wealth management firm is not something that should be done quickly or without contemplation.

This type of firm must have the experience and skills to take a comprehensive approach to your entire asset portfolio. There are several firms that have these characteristics.

[The following is a featured post discussing the idea of investing a small amount of money in order to pay off debt. This is something that I have done with mixed results so far.]

In days gone by, it was commonly believed that the specter of debt could only be overcome by reducing expenditure and committing to a frugal lifestyle. While this remains solid advice, however, it is not necessarily the most productive method in an age of technological advancement and advanced money making opportunities.

Although it may sound a little unorthodox, the prevailing contemporary theory requires individuals to invest capital in pursuit of greater returns. This money can then be used to repay debts more effectively, without forcing households to struggle against a back-drop of austerity and long-term uncertainty.

How to Speculate and Accumulate: 3 Ways to Spend More and Generate Additional Income

With this in mind, how exactly can modern-day speculation inspire you to boost your income and stave off debt? Consider the following:

Embrace the Financial Markets

While access to the open financial markets was once exclusive to professional traders and large commercial institutions, the development of sophisticated online trading platforms and educational resources have removed many of the pre-existing barriers to entry. As a result of this, numerous markets are now within reach of independent traders with minimal dollars.

This has exposed everyday citizens to a diverse range of financial products and derivatives, from trading forex and currencies to exchanging carbon credits. While you will needs patience and knowledge to succeed, there is ample opportunity to build wealth through this method.

Understand how to Create a Stream of Passive Income

Passive income is a term used to describe capital can be generated without the completion of a direct action or the sale of a commodity. It allows you to speculate and accrue wealth that is entirely separate to what you earn through traditional working methods, which in turn can be used to clear a significant amount of your total debt.

There are several options of this type to suit alternative risk appetites, with the latest high yield checking accounts providing a low-risk avenue for growth and real estate investments available to those with more income and a desire to achieve greater returns.

Do not Underestimate the Rewards of Hard-work

While it may sound old-fashioned and overly simplistic, hard work remains one of the most effective methods of boosting your income and combating personal debt. This does not necessarily mean that you have to work for 12 hours a day in a number of physically demanding jobs, however, as those of you with a viable industry skill can use it to work from home and freelance in your spare time.

Website developers, content writers and software developers remain in constant demand in the current economy, and this has created opportunity for proactive individuals to market themselves as an independent contractor.

As a general rule, speculating to accumulate does require a certain degree of disposable income in order to generate any sort of return. This can be minimal, however, so as long as you are willing to commit this sum in the pursuit of reducing your debt then you can achieve outstanding results over time.

Ever since the financial crash in 2008, this hasn’t necessarily been the case and now, in 2014, scapegoating for problems seems to be worse than it ever has been before. Banks and large trading institutions may have caused some of the problems that ultimately led to the crash, but small scale investors were also causing issues.

Here we will look at ethical trading and how the concept of social trading allows us to trade in a manner that allows us to keep a clear conscience.

What Do We Mean By Ethical Trading?

When the financial crash happened, many banks and institutions were punished for unethical trading. This means that they invested money in areas where they shouldn’t have, gambling money that wasn’t theirs to lose.

Ethical trading on such a large scale would mean that a bank will only spend money that is theirs, or will only use your money if you’ve given them explicit permission to do so (as you can with some types of account). Even then, when a bank invests this money, they should look to invest in products and projects that are perceived to be ethical.

As well as this, as was the issue in 2008, banks must also be seen to be staying within the banking code of conduct, observing rates rather than trying to manipulate them.

How Can Ethical Trading Be Practiced On A Small Scale?

Although many banks have had issues with the law and unethical trading in the past, single, small-scale investors have fared much better and, the majority of the time, they are trading well within the code of conduct.

If you trade at home on a trading platform, it is highly likely that you’re already what is considered to be an ethical trader; staying within the rules and only trying to make an honest living.

Issues with individual traders generally only arise when people are given access to insider information; something that is both illegal and immoral.

Passing On The Word: The Benefits Of Social Trading

Social trading acts as an online forum for investors, where people can meet, chat and discuss trades. Because of the fact that brand new investors can speak to those with far more experience, this is the perfect place to spread the message of ethical trading to those who are inexperienced and likely to succumb to pressure.

Social trading looks as though it could very well be the future of forex trading, and it’s available through almost any ECN broker. With this in mind, now is the perfect time to learn from the lessons of 2008. So, consider the way you trade, ensure it is ethical and spread the word. Together, we can make the world a better, fairer place.

When people begin to invest money, they’re usually hungry for early results. They may approach investing with the conviction of a recent convert, saving and investing as much money as they can, even to the point of neglecting other needs, such as putting life insurance before investing. This is understandable, and quite natural, particularly if you are either young or relatively new to investing.

In spite of your enthusiasm, it is important to make sure that you have a few basics covered before you begin investing. One of those basics is life insurance.

You’re Not Ready To Invest Unless You’ve Covered The Contingencies

Investment advisers and financial planners commonly recommend that before you begin investing you should have a well-stocked emergency fund. That can include anywhere from 3 to 6 months of living expenses. The purpose of the fund is to make sure that you are protected from any income disruptions or large expenses that might force you to tap your investment portfolio ahead of schedule.

The fund enables you to carry on with the business of life, while keeping your investment portfolio protected from early withdrawals.

Future Wealth Won’t Take Care Of Your Family If You Die Before You Get Rich

There is sometimes a thought that you don’t need life insurance, since your investment portfolio will eventually grow to the point where you will be effectively self-insured. This notion is especially popular among the young, since the prospect of their own death seems so remote.

The problem with this thinking is that it may be many years before you reach the point of being anything close to being self-insured through your investment portfolio. Let’s say that right now you have $10,000 to invest, but you fully expect it to grow to over $100,000 within the next 10 years. Maybe at that point you will be something close to self-insured, but what happens if something happens to you between now and then? What happens if you die when you only have $20,000 in investments?

Future wealth will not protect your family if something were to happen to you today. That’s the whole purpose of life insurance – as a contingency to take care of your family’s financial needs before you have the money that a large portfolio will provide.

The Cost-Benefit Of Life Insurance Is Much Higher Than An Equivalent Investment

One of the biggest advantages of life insurance is that you can quite literally buy six figures in coverage for just a few hundred dollars per year. This is especially true if you are in your 20s or early 30s. You may be able to buy $250,000 in life insurance for just a few hundred dollars per year.

If you are just starting out as an investor, it will take you many years – even decades – to accumulate that much money.

There may sometimes be the thought to keep your expenses as low as possible in order to maximize the amount of money that you have available to invest. If a large life insurance policy is only going to cost you $500 or $1,000 per year, it won’t be taking much away from your investment efforts.

And the benefit that you will have as a result of paying the relatively small premium will be enormous for your family.

Life Insurance Before Investing – Just In Case Your Investment Plans Don’t Quite Turn Out

It’s natural to be optimistic when it comes to investing. In fact, optimism is virtually essential to a new investor. But it is a sad fact that investment plans don’t always turn out the way we want them to, despite our best efforts.

Stock markets crash, individual investments blowup, and sometimes we need to tap investment portfolios early for unexpected reasons. The point is, investing is never a guarantee.

And just in case it doesn’t turn out as well as you hope, your life insurance policy can back you up with a plan to cover your family in the event of your death.

Life Insurance Should Be Seen As A Form Of Investment Diversification

You’re probably well acquainted with the idea of investment diversification. But not all diversification efforts are neatly contained within an individual portfolio. Some of the best forms of diversification you can have will be outside your portfolio. This can include an emergency fund, fixed income investments (like bank assets), and real estate.

But insurance can also be a form of diversification. As discussed above, it is a fail-safe against your death, at least until the time arrives that you have enough money saved and invested that you no longer need to maintain the policy.

If you can think of life insurance as a financial instrument that complements your investment portfolio, having it will seem more logical. And not having it can seem like an exercise in being penny wise, and pound foolish.

If you are an investor, especially a new one, do you have a credible life insurance policy – just in case? If not, then you need to make sure you pick up some life insurance before investing another cent!

Want to make sure that your family is protected both now and in the future? Click below to join our mailing list and learn how to manage your finances…

[The following is a guest post giving 4 important tips to selling your annuities.]

Selling your annuities can be a very tricky affair considering the fact that it is one of the most complex financial products to understand in today’s age.

It is a Herculean task for an inexperienced man to understand the pros and cons of annuities. There are a lot of complicated permutations and combinations which are involved, and more often than not, the complexity can make it difficult to know if it’s the right time to sell the annuities.

Convincing someone to buy your annuity is not an easy task. Because of this, here are a few tips to aid you in the selling of your annuities.

4 Tips To Selling Your Annuities

Have A Clear Understanding Of The Entire Process

It’s important to understand the various concepts surrounding an annuity prior to the sale, so that you can be in a position to make a profit. You should know where and how to strike the balance in terms of claiming the right amount of money when you sell your annuity. In other words, your asking price should be in line with what the market will bear and not too high nor too low.

If you are unsure about how much to charge, then it may be wise to have a financial advisor review your proposition. In addition, there are a bunch of companies that are always willing to buy annuities from an outside source. You can use their services to your advantage. However, since they deal with a number of transactions, you need to make sure that you are asking for a realistic amount – ideally, the amount should not exceed 85% of the face value.

Be Sure To Conduct Research

Research always comes in handy especially when you are trying to sell entities which can be very complex to comprehend. Before you reach out to any company, be sure to research the types of annuities they purchase, and with whom they normally do business, so that you understand their targets and tactics.

Search around for people who have experience with selling annuities in order to get several different perspectives from those “in the know”.

Play It Safe

Annuities are built upon the concept of risk. Because of this, it is necessary to be extremely cautious, since small mistakes can lead to huge losses. Don’t be in a hurry; rather take steps very slowly and wisely. Explore multiple options until you get the one which will suit you best.

You Don’t Have To Sell It All

Always remember that you do not have to sell your entire annuity all at once. Sometimes, you will be able to find a buyer will be willing to purchase a part of your annuity from you. If you can make enough from a partial sale, that may be the best thing you can do, while you wait for market conditions (or your own knowledge of the market) to improve.